Influence of Virtual Financial Data Management System toward Value Added Tax Collection in Tanzania: A Case of Tra, Dar es Salaam City.

Phinias, Baraka Ibrahim (2024) Influence of Virtual Financial Data Management System toward Value Added Tax Collection in Tanzania: A Case of Tra, Dar es Salaam City. Masters thesis, The Open University of Tanzania.

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Abstract

Digital transformation has the potential to significantly increase revenue collection by streamlining procedures, providing better taxpayer services, and raising tax income, which is crucial for funding development and good governance. This study examined three study objectives as follows; to examine the perceived ease of use of the Virtual financial data management system toward the increase in tax collection, to examine the perceived usefulness of the Virtual financial data management system toward the increase in tax collection, and to examine the efficiency of Virtual financial data management system toward increase in tax collection. Data was collected from traders in Dares Salaam using quantitative methodology. A total of 334 surveyed data was analyzed using multiple linear regression analysis. The result shows that perceived ease of use, perceived usefulness, and efficiency have a significant influence on the increase in Tax collection in Tanzania, with an R square of 0.899 and a P-value of 0.000. The study recommends that enhanced tax collection and digital transformation can lead to improved financial performance and enhanced service delivery. The study expands the theoretical understanding of digital transformation and value-added tax collection and provides relevant insights for the government to promote the deep integration of the digital economy with the real economy. Keywords: Digitalization, Trade, Virtual financial data management systems (VFDMS), Tax revenue (VAT)

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